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Nifty Open Interest Put Call Ratio fell to 1.30 levels from 1.41 levels -  HDFC Securities

F&O HIGHLIGHTS

SHORT BUILD UP WAS SEEN IN THE NIFTY & BANK NIFTY FUTURES

BE BEARISH WITH TRAILING STOP LOSS OF 15800 LEVEL

* Market ended with tiny losses on Tuesday. The Nifty hit record high of 15,778.80 in early trade, encouraging traders to book profits. IT, FMCG and pharma stocks saw buying while banks and financial shares witnessed selling. The Nifty 50 index lost 11.55 points or 0.07% to 15,740.10.

* Minor short build up was seen in the Nifty Futures’ where Open Interest marginally rose by 1.01% with Nifty falling by 0.07%.

* Short build was seen in the Bank Nifty Futures too, where we have seen 1.77% rise in the Open Interest with Bank Nifty falling by 1.01%.

* Nifty Open Interest Put Call Ratio fell to 1.30 levels from 1.41 levels. Amongst the Nifty options (10-June Expiry), maximum OI was seen in the Nifty Put at 15600-15700 levels, Indicating support around 15600 level. On the higher side, resistance is seen in the vicinity of 15800- 16000 levels where we have seen Call writing.

To Sum It Up, Minor Short build up in Nifty futures, Short build up in the Bank Nifty Futures & Call writing at 15800-16000 levels Indicates that one should remain cautious on the markets.

Therefore, our advise is to be bearish with the trailing stop loss of 15800 level. On the lower side 15600-15700 levels could act as an immediate support where maximum OI in the Put is seen.

In the Bank Nifty, our advice is to sell on rise with SL of 35500 level. On the lower side, support is seen in the vicinity of 34500-34000 levels.

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